The Company— Present Situation
Risks
Opening a new food establishment is often seen as one of the more risky business ventures because of the known high rate of failure of new restaurants. The proprietors of Butcher Hollow Bar BQ feel that we have effectively minimized these risks by careful market research and by bringing considerable food service management and entrepreneurial experience to the project.
Tom and Helen Carter are well-trained both by formal education and by many years of experience in restaurant service and management. Additionally, Mr. Carter was owneroperator of a successful restaurant for eight years in St. Louis during which he retired a $25,000 SBA loan in a timely fashion.
As this Business Plan will reflect, careful planning and preparation have gone into the concept and the execution of this plan. Positive consumer reaction, favorable demographics, and strategic location combine to assure Butcher Hollow Bar BQ a viable market.
Another risk that is effectively minimized is that of surviving what is sometimes known as the starvation period for many start-up businesses; i.e., the first six months to a year while customers become aware of your establishment. While the Business Plan calls for a proprietor's draw of $1,000 per month, this is of course contingent upon conditions. With Mrs. Carter maintaining her present position of employment and both she and Mr. Carter working at Butcher Hollow, the new business can operate with a minimum of payroll load, thus minimizing a significant cost factor for all new businesses. As she continues working at the Crest Downtown Hotel, the household living expenses can be met by her salary.
Traditional casualty risks will be covered by Business Owners' insurance, ample to cover all assets and with a $500,000 public and product liability umbrella.
Marketing Strategy—advertising, Promotion & Public Relations
